A DraftKings lawsuit or FanDuel lawsuit generally alleges that these platforms use deceptive tactics to keep people betting after they’ve lost money. These apps have promotions and user interfaces that can make it easy to start gambling and difficult to stop. As a result, people have experienced financial losses and mental health struggles like addiction, among other damages.
Online gambling platforms licensed to operate in New York include:
- Bally Bet
- BetMGM
- Caesars Sportsbook
- DraftKings Sportsbook
- ESPN Bet
- Fanatics Sportsbook
- FanDuel Sportsbook
- Resorts World Bet
- Rush Street Interactive
New Yorkers who suffered substantial monetary losses (often $25,000 or more) after betting on DraftKings, FanDuel or other platforms may be able to file a lawsuit for compensation. A lawyer at Meirowitz & Wasserberg can help you seek justice.
Deceptive Marketing and “Risk-Free” Betting in New York Online Gambling
Lawsuits claim that certain online platforms used deceptive marketing practices to keep users engaged and encourage them to spend more money. The primary example of this is DraftKings’ “risk-free” bet advertising. New Yorkers may think “risk-free” means they will get their money back if they lose, but they are instead credited with a “Bonus Bet,” not the amount they originally wagered.
The money in a “Bonus Bet” can only be used within the app to bet again, which encourages more gambling. “Bonus bets” also pay out less than those made with U.S. dollars.
Online Gambling Laws That Protect New Yorkers
The New York State Gaming Commission has added regulatory measures to protect the public. Under the New York Racing, Pari-Mutuel Wagering and Breeding Law, sports betting advertisements are required to include a warning about the dangers of gambling.
New York General Business Law section 349 also prohibits deceptive practices in the conduct of any business in the state. Businesses that break these laws can be held liable.
New York Online Gambling Statistics
Online gambling was first legalized in New York in 2022, and New Yorkers have since bet more than $56 billion. The state has also become the national leader in online sports gambling.
DraftKings is one of the biggest online gambling operators in the state. Between March 2024 and March 2025, it reported over $6 billion in bets to the New York State Gambling Commission.
State statutes require that some tax revenue from online sports betting be put towards addiction treatment and youth programs. However, studies suggest the state isn’t allocating enough money for these initiatives.
Who May Qualify for a New York Online Gambling Addiction Lawsuit?
You may qualify for a lawsuit if you bet on online platforms, such as FanDuel or DraftKings, and lost $25,000 or more. Other criteria include a gambling disorder diagnosis.
You may qualify for a gambling addiction lawsuit if you:
- Bet on online gambling apps such as DraftKings or FanDuel.
- Lost a large amount of money ($25,000 or more) because of compulsive gambling.
- Received a gambling disorder diagnosis or a related condition, such as depression, anxiety or compulsive behaviors.
- Tried to use cool-off periods or personal restraint to stop gambling, but the app continued to send promotions and VIP offers.
- Suffered from harmful changes, such as money problems, withdrawal or stress because of your addiction.
If you think you qualify, you should contact an experienced lawyer at Meirowitz & Wasserberg. We’ll treat your case with compassion and respect.
We also have the resources to take on big companies like DraftKings and FanDuel. Our lawyers are experts in local laws and regularly go to trial in all five boroughs of NYC.
What Evidence Do I Need for an Online Gambling Addiction Lawsuit?
An attorney can help figure out what proof you will need in your specific case. They can also help you gather evidence.
Evidence that can help a gambling addiction case includes:
- Financial records of how much money you lost.
- Records from therapy or rehab for your gambling addiction disorder.
- Statements from loved ones and family members who witnessed the impact your disorder had on you. This can include disrupted relationships, financial troubles and health impacts.
- Evidence that gambling behavior worsened mental disorders, such as treatment notes from your doctor, psychiatrist or support groups.
If you can provide more evidence that you suffered serious financial and emotional losses, your lawyer can build a stronger case.
Steps To Take if You Believe a Sports Betting App Harmed You
If you believe that you were harmed by a sports betting app, the first thing you should do is seek help. The New York State Office of Addiction Services and Supports offers several resources to support people with gambling addictions.
If you are interested in filing a lawsuit, you can begin by gathering evidence, such as records of app usage or a diagnosis of a gambling disorder. After that, contact an attorney at Meirowitz & Wasserberg. We can help you determine whether you have a case. There are no upfront charges; we only get paid if we recover for you.
Online Gambling Addiction Lawsuit FAQs
Is there a class action lawsuit for sports betting apps?
Yes. There are class actions for sports betting apps, but some people may also file individual lawsuits. An attorney can tell you which type of claim is better for you.
Can I still file a lawsuit if I closed my betting accounts?
You may still be able to file a lawsuit if you closed your accounts. Instead, you will have to provide financial records showing you lost money on a specific app.
Can parents file lawsuits against online gambling platforms on behalf of minors?
Yes, parents can file online gambling lawsuits on behalf of minors. Research shows that a significant percentage of adolescents who gamble participate in high-risk activities.
What is the difference between online gambling addiction and traditional gambling addiction?
Online gambling addiction can be more difficult to avoid because apps are easily accessible on your phone. They can also entice people to bet with live odds, push notifications and VIP deals. Traditional gambling at casinos or other physical locations requires more effort and isn’t instantly available.
About The Author
Daniel Wasserberg
Founding Partner
Daniel Wasserberg, a founding partner of Meirowitz & Wasserberg, is a Best Lawyers-recognized and Super Lawyers-rated mesothelioma attorney with over 20 years of experience. Named a Top 100 Trial Lawyer and Top 10 Asbestos-Mesothelioma Lawyer, he leads the firm's national asbestos practice.
